The main taxes in Australia include Corporate Tax, Personal Income Tax, Capital Gains Tax, Goods and Services Tax, and Property Tax.
Personal Income Tax applies at federal level only, as state governments in Australia do not enforce any income taxes. It applies to the worldwide income of all Australian residents at a progressive rate that varies with the level of income. Up to $18,200 there is no applicable Personal Income Tax; between $18,200 and $37,000 19c is charged for each $1 over $18,200; between $37,001 – $80,000, $3,572 is charged as well as 32.5c for each $1 over $37,000; between $80,001 – $180,000 $17,547 is charged as well as 37c for each $1 over $80,000; and income exceeding $180,001 is charged $54,547 as well as 45c for each $1 over $180,000.
Corporate Tax is applicable to the profits of companies in Australia. There is a flat Corporate Tax rate of 30% which should be paid before the distribution of dividends etc.
Capital Gains Tax, similarly to the UK, applies to the profit from the sale or disposal of assets. There are some exemptions from this tax, the biggest being the sale of the family home. The gains qualify for tax in the tax year in which they are received.
Goods and Services Tax (GST) replaced the Quarterly Sales Tax and is currently at a rate of 10%. GST is incredibly complicated and is a form of VAT in Australia. It applies to all goods and services in the country, bar some exemptions such as food and medical services. All Australian companies must register for GST if turnover exceeds $50,000 annually.
Property Taxes are levied on both a federal and state level and mainly apply to land values.
Individuals and companies in Australia must register for an Australian Tax File Number (TFN). This is similar to a National Insurance number in the UK and is needed to open a bank account, find a job, and ensure accurate tax liability. Obtaining a TFN takes approx. two to three weeks and should be one of the first things to do once you arrive.
